Culp, Inc. Announces Corporate Developments.

HIGH POINT, N.C. -- Culp, Inc. (NYSE: CFI) announced today that Patrick H. Norton has resigned as a member of the company's board of directors, effective August 14, 2006. Mr. Norton served on the Culp board of directors for 19 years, having joined the board in 1987. His term as a director was set to expire at the company's 2006 annual meeting of shareholders, which is currently scheduled for September 26, 2006. Mr. Norton has been associated with La-Z-Boy Incorporated, a leading furniture manufacturer and retailer based in Monroe, Michigan, since 1981, serving most recently as Chairman of the Board of La-Z-Boy. Mr. Norton retired from that position effective August 16, 2006.

Robert G. Culp, III, chairman of the board and chief executive officer of Culp, Inc., noted Mr. Norton's history of service to the company and commented on his departure. "Pat Norton has been a great friend and a great advisor to Culp for many years. He is also a giant in our industry, and his counsel as a member of our board has been invaluable. Although Pat will no longer be a member of our board, I am very glad to report that our board has decided to name him as a Director Emeritus."

As previously disclosed, H. Bruce English, another member of the company's board of directors, died unexpectedly on August 3, 2006. The death of Mr. English required the company to notify the New York Stock Exchange (NYSE) that it no longer had a majority of independent directors as required by NYSE rules. The NYSE then issued a notice informing the company that it was deficient in meeting its listing standard and that the company would be deemed non-compliant with the listing standards if the deficiency was not cured by August 14, 2006. With the resignation of Mr. Norton, the company now has four independent directors and three non-independent directors, which cures the deficiency in compliance with NYSE rules.

The company also announced additional developments in connection with NYSE listing standards. As previously disclosed in the Company's April 30, 2006 Form 10-K, the company's market capitalization and shareholders' equity have fallen below the levels required for continued listing on the New York Stock Exchange. On August 10, 2006, the NYSE provided formal notice to the company that it is not in compliance with the NYSE's continued listing standards because over a consecutive 30 trading-day period the company's average market capitalization was less than $75 million, and its most recently reported shareholders' equity was below $75 million (at $74.5 million as of April 30, 2006). Under applicable NYSE procedures, the company has 45 days from the date of its receipt of the notice to submit a plan to the NYSE to demonstrate its ability to achieve compliance with the continued listing standards within 18 months. The company intends to submit a plan that will demonstrate compliance with the listing standards within the required time frame. If the plan is accepted, the NYSE will monitor the company on a quarterly basis and can deem the plan period over prior to the end of the 18 months if the company is able to demonstrate returning to compliance with the applicable continued listing standards (which would mean the company would have to either increase its shareholder's equity to $75 million or demonstrate market capitalization of at least $75 million), or achieving the ability to qualify under an original listing standard, for a period of two consecutive quarters.

Culp, Inc. is one of the world's largest manufacturers of mattress fabrics for bedding and upholstery fabrics for furniture. The company's fabrics are used principally in the production of bedding products and residential and commercial upholstered furniture.

This release contains statements that may be deemed "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 27A of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties. Further, forward-looking statements are intended to speak only as of the date on which they are made. Forward-looking statements are statements that include projections, expectations or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as "expect," "believe," "estimate," "plan" and "project" and their derivatives, and include but are not limited to statements about the company's future operations, production levels, sales, SG&A or other expenses, margins, gross profit, operating income, earnings or other performance measures. Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on the company's business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect the company adversely. Changes in consumer tastes or preferences toward products not produced or marketed by the company could erode demand for the company's products. In addition, strengthening of the U.S. dollar against other currencies could make the company's products less competitive on the basis of price in markets outside the United States. Also, economic and political instability in international areas could affect the company's operations or sources of goods in those areas, as well as demand for the company's products in international markets. Finally, unanticipated delays or costs in executing restructuring actions could cause the cumulative effect of restructuring actions to fail to meet the objectives set forth by management. Other factors that could affect the matters discussed in forward-looking statements are included in the company's periodic reports filed with the Securities and Exchange Commission.